Project Valuation and Investment Decisions : CAPM Versus Arbitrage

This paper shows that (i) project valuation via disequilibrium NPV CAPM contradicts valuation via arbitrage pricing, (ii) standard CAPM-minded decision makers may fail to profit from arbitrage opportunities, (iii) standard CAPM-based valuation violates value additivity. As a consequence, the standard use of CAPM for project valuation and decision making should be reconsidered

MoreLess

Year of publication:	[2009]
Authors:	Magni, Carlo Alberto
Publisher:	[2009]: [S.l.] : SSRN

Extent:	1 Online-Ressource (8 p)
Type of publication:	Book / Working Paper
Notes:	In: Applied Financial Economics Letters, Vol. 3, No. 1, pp. 137-140, 2007 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 2007 erstellt
Classification:	G11 - Portfolio Choice ; G12 - Asset Pricing ; G30 - Corporate Finance and Governance. General ; G31 - Capital Budgeting; Investment Policy
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012764044